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Appeals Court Lets Trump Administration Enforce Medicaid Cutoff Hitting Planned Parenthood

A First Circuit stay permits HHS to activate the OBBB Act’s one-year reimbursement bar for abortion providers meeting the $800,000 Medicaid threshold.

Overview

  • Three Biden-appointed judges granted a stay of U.S. District Judge Indira Talwani’s nationwide injunction that had blocked enforcement of the law.
  • HHS can now implement the one-year cutoff for nonprofits that provide abortions and took in more than $800,000 in Medicaid funds in 2023, with status assessed as of October 1.
  • Planned Parenthood says more than 1.1 million patients can no longer use Medicaid at its health centers and that up to 200 clinics could be at risk of closure.
  • Justice Department and HHS filings argued the measure is a lawful spending decision, not an unconstitutional bill of attainder, and noted Medicaid already does not pay for most abortions.
  • The appeals court will hear the case on the merits in the coming weeks, as related challenges by other providers and states proceed in separate courts.